Dive Brief:
- A bill in the California state Assembly proposes tying a contractor to a subcontractor's wage and tax obligations if the sub doesn't do what it is supposed to.
- The law would effectively make the contractor the employer for the sub's people if the subcontracting company does not live up to its obligations.
- The National Federation of Independent Businesses is upset about the proposal, saying it attacks the very reason that work is subbed out in some circumstances.
Dive Insight:
Whether the bill will become law and change the landscape for businesses that include construction contractors bears watching. The sponsor of the legislation that was amended to add the provisions, Assembly Bill 1897, chairs the Assembly's Labor and Employment Committee, so it obviously is a serious proposal.